Averting the Worst Krugman

"Averting the Worst" Paul Krugman

In "Averting the Worst," I think that the author's key point is that Big Government has played a critical part in stabilizing the economy during this crisis. According to Krugman, what prevented America from going into a second Great Depression was how the government reacted to the crisis. He goes on to say that the most important thing the federal government has done is they have not cut down on spending, even as income has fallen. The fact that the government is still pumping money into the economy has helped. Although Krugman admits that the bailouts should have been handled better, he adds that without the bailouts things would be worse right now.

The possible opposing argument to rebuttal Krugman could be that the job market still has not turned around and we still are around 9 million jobs shy of what we should be. Also, like Krugman said, the bailouts could have been better. Republicans in opposition of the government playing such a big role are demanding that government stop standing in the way of a looming depression. The people opposing Krugman's argument are against the stimulus package and don't support such a Big Government.

I strongly agree with Krugman on this topic. I also believe that without the bailouts we would be much worse off right now then we are, and despite the fact that Obama's stimulus package may have been too small it has showed improvements in the number of jobs available and this number will continue to grow. I believe if the government hadn't stepped in our time of crisis then we would have continued to plunge into another depression.